Despite maintaining a robust 86.0% gross margin in 2026Q1, the company's inability to control SG&A expenses has resulted in a persistent operating margin deficit of -5.9%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 99.43M | 98.95M | 90.36M | 80.42M | 82.03M | 79.57M | 66.83M | 53.98M | 43.84M | 28.29M | 17.25M | 188.02M | 166.69M | 155.46M | 202.47M | 274.77M | 274.27M | 278.47M | 257.17M | 262.94M | 219.48M | 142.49M | 96.66M | 102M | 111.41M | 98.74M | 60.59M | 45.72M | 30.7M |
| Revenue Growth % | 7.74% | 9.51% | 12.36% | -1.97% | 3.09% | 19.07% | 23.8% | 23.12% | 54.98% | 64.03% | -90.83% | 12.79% | 7.22% | -23.22% | -26.31% | 0.18% | -1.51% | 8.28% | -2.19% | 19.8% | 54.03% | 47.42% | -5.24% | -8.44% | 12.83% | 62.96% | 32.51% | 48.94% | - |
| Cost of Goods Sold | 13.27M | 12.79M | 12.55M | 11.63M | 10.91M | 10.53M | 8.65M | 7.11M | 5.71M | 3.93M | 2.84M | 103.25M | 91.19M | 90.16M | 86.37M | 157.91M | 138.44M | 134.37M | 107.93M | 94.56M | 79.15M | 61.98M | 48.65M | 48.93M | 45.48M | 39.28M | 22.13M | 17.11M | 12.9M |
| COGS % of Revenue | - | 12.93% | 13.89% | 14.46% | 13.31% | 13.23% | 12.95% | 13.17% | 13.01% | 13.88% | 16.48% | 54.91% | 54.7% | 57.99% | 42.66% | 57.47% | 50.48% | 48.25% | 41.97% | 35.96% | 36.06% | 43.5% | 50.33% | 47.97% | 40.82% | 39.78% | 36.53% | 37.43% | 42.02% |
| Gross Profit | 86.16M | 86.16M | 77.81M | 68.79M | 71.12M | 69.05M | 58.18M | 46.87M | 38.14M | 24.36M | 14.4M | 84.77M | 75.5M | 65.31M | 116.1M | 116.86M | 135.83M | 144.1M | 149.25M | 168.38M | 140.33M | 80.52M | 48.01M | 53.07M | 65.93M | 59.46M | 38.45M | 28.61M | 17.8M |
| Gross Margin % | 86.66% | 87.07% | 86.11% | 85.54% | 86.69% | 86.77% | 87.05% | 86.83% | 86.99% | 86.12% | 83.52% | 45.09% | 45.3% | 42.01% | 57.34% | 42.53% | 49.52% | 51.75% | 58.03% | 64.04% | 63.94% | 56.5% | 49.67% | 52.03% | 59.18% | 60.22% | 63.47% | 62.57% | 57.98% |
| Gross Profit Growth % | - | 10.73% | 13.11% | -3.27% | 3% | 18.69% | 24.13% | 22.89% | 56.54% | 69.13% | -83.01% | 12.27% | 15.61% | -43.75% | -0.65% | -13.97% | -5.74% | -3.45% | -11.36% | 19.99% | 74.29% | 67.7% | -9.54% | -19.5% | 10.88% | 54.63% | 34.4% | 60.74% | - |
| Operating Expenses | 89.35M | 91.26M | 83.74M | 73.36M | 71.39M | 67.06M | 62.8M | 64.07M | 74.23M | 49.5M | 30.98M | 80.59M | 79.88M | 86.87M | 113.85M | 145.75M | 129.69M | 144.88M | 238.39M | 157.93M | 134.69M | 77.43M | 54.3M | 54.36M | 57.18M | 52.85M | 34.03M | 26.49M | 16.9M |
| OpEx % of Revenue | - | 92.23% | 92.67% | 91.22% | 87.02% | 84.28% | 93.98% | 118.7% | 169.31% | 174.99% | 179.63% | 42.86% | 47.92% | 55.88% | 56.23% | 53.05% | 47.28% | 52.03% | 92.7% | 60.06% | 61.37% | 54.34% | 56.18% | 53.29% | 51.33% | 53.53% | 56.16% | 57.93% | 55.05% |
| Selling, General & Admin | 89.35M | 91.26M | 83.74M | 73.36M | 71.34M | 66.7M | 62.8M | 64.07M | 74.23M | 49.5M | 30.98M | 80.59M | 79.88M | 86.87M | 113.85M | 145.75M | 129.69M | 144.88M | 238.39M | 157.93M | 134.69M | 77.43M | 54.3M | 54.36M | 57.18M | 52.85M | 32.37M | 25.42M | 16.6M |
| SG&A % of Revenue | - | 92.23% | 92.67% | 91.22% | 86.96% | 83.82% | 93.98% | 118.7% | 169.31% | 174.99% | 179.63% | 42.86% | 47.92% | 55.88% | 56.23% | 53.05% | 47.28% | 52.03% | 92.7% | 60.06% | 61.37% | 54.34% | 56.18% | 53.29% | 51.33% | 53.53% | 53.42% | 55.6% | 54.07% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 49K | 360K | 0 | 0 | 204K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.66M | 1.06M | 300K |
| Operating Income | -5.52M | -5.1M | -5.93M | -4.57M | -265K | 1.99M | -4.63M | -17.2M | -36.09M | -25.14M | -16.57M | 4.18M | -5.09M | -21.64M | 590K | -31.29M | 6.14M | -781K | -89.14M | 10.45M | 5.64M | 3.09M | -6.29M | -1.28M | 8.75M | 6.61M | 4.43M | 2.12M | 900K |
| Operating Margin % | -5.55% | -5.16% | -6.57% | -5.68% | -0.32% | 2.49% | -6.93% | -31.87% | -82.32% | -88.87% | -96.1% | 2.22% | -3.05% | -13.92% | 0.29% | -11.39% | 2.24% | -0.28% | -34.66% | 3.98% | 2.57% | 2.17% | -6.51% | -1.26% | 7.85% | 6.7% | 7.31% | 4.65% | 2.93% |
| Operating Income Growth % | - | 13.97% | -29.91% | -1623.4% | -113.35% | 142.89% | 73.1% | 52.33% | -43.56% | -51.68% | -496.44% | 182.21% | 76.5% | -3767.97% | 101.89% | -609.23% | 886.68% | 99.12% | -952.8% | 85.3% | 82.79% | 149.06% | -390.56% | -114.65% | 32.36% | 49.32% | 108.42% | 136.05% | - |
| EBITDA | 5.58M | 13.37M | 12.69M | 12.47M | 15.67M | 15.13M | 7.41M | -7.61M | -29.1M | -20.24M | -12.89M | 9.36M | -874K | -17.68M | 10.08M | -24.7M | 13.79M | 6.9M | -80.51M | 22.74M | 13.45M | 7.79M | -1.39M | 1.8M | 11.06M | 9.48M | 6.09M | 3.19M | 1.2M |
| EBITDA Margin % | 5.62% | 13.51% | 14.04% | 15.51% | 19.11% | 19.01% | 11.09% | -14.1% | -66.38% | -71.54% | -74.74% | 4.98% | -0.52% | -11.37% | 4.98% | -8.99% | 5.03% | 2.48% | -31.31% | 8.65% | 6.13% | 5.46% | -1.44% | 1.76% | 9.93% | 9.6% | 10.05% | 6.97% | 3.91% |
| EBITDA Growth % | -56.49% | 5.34% | 1.72% | -20.41% | 3.59% | 104.07% | 197.44% | 73.85% | -43.8% | -56.99% | -237.78% | 1170.48% | 95.06% | -275.44% | 140.79% | -279.22% | 99.7% | 108.57% | -454.01% | 69.09% | 72.72% | 659.81% | -177.34% | -83.74% | 16.75% | 55.65% | 90.99% | 165.62% | - |
| D&A (Non-Cash Add-back) | 11.1M | 18.47M | 18.62M | 17.04M | 15.94M | 13.14M | 12.04M | 9.6M | 6.99M | 4.9M | 3.68M | 5.17M | 4.21M | 3.96M | 9.49M | 6.58M | 7.64M | 7.68M | 8.63M | 12.29M | 7.81M | 4.7M | 4.9M | 3.08M | 2.31M | 2.86M | 1.66M | 1.06M | 300K |
| EBIT | -4.07M | -5.1M | -5.93M | -5.07M | -2.78M | 1.99M | -4.63M | -17.2M | -36.41M | -25.14M | -16.57M | -8.71M | -10.73M | -21.64M | -10.17M | -28.95M | 6.14M | -781K | -89.14M | 10.45M | 5.64M | 3.09M | -6.29M | -1.28M | 8.75M | 6.61M | 4.43M | 2.12M | 900K |
| Net Interest Income | 146K | 11K | 501K | -467K | -257K | -265K | -773K | -643K | 355K | 515K | -351K | -311K | 880K | 2.42M | -86K | -90K | 1.29M | -1.52M | 1.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 146K | 11K | 501K | 0 | 0 | 0 | 0 | 0 | 355K | 0 | 0 | 0 | 880K | 0 | 0 | 0 | 0 | 0 | 1.22M | 3.89M | 3.26M | 358K | 160K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 467K | 257K | 265K | 773K | 643K | 0 | 515K | 351K | 311K | 0 | 2.42M | 86K | 90K | 1.29M | 1.52M | 0 | 0 | 0 | 0 | 0 | 73.97M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 164K | 11K | 501K | -968K | -2.77M | -265K | 5.33M | -643K | 355K | 515K | -351K | -311K | 6.46M | 27.52M | -8.08M | -4.64M | 1.29M | -1.52M | 34.02M | 4.15M | 3.9M | -175K | 109K | 546K | -260.62K | -58.07K | -223.41K | 656.72K | 300K |
| Pretax Income | -5.36M | -5.09M | -5.43M | -5.54M | -3.03M | 1.72M | 699K | -17.85M | -35.74M | -24.63M | -16.93M | 2.31M | -4.26M | 5.88M | -18.25M | -35.93M | 7.43M | -2.31M | -55.13M | 14.6M | 9.55M | 2.91M | -6.18M | -736.47K | 8.49M | 6.55M | 4.2M | 2.78M | 1.2M |
| Pretax Margin % | -5.39% | -5.15% | -6.01% | -6.88% | -3.7% | 2.16% | 1.05% | -33.06% | -81.51% | -87.05% | -98.14% | 1.23% | -2.56% | 3.78% | -9.01% | -13.08% | 2.71% | -0.83% | -21.44% | 5.55% | 4.35% | 2.04% | -6.39% | -0.72% | 7.62% | 6.64% | 6.94% | 6.08% | 3.91% |
| Income Tax | 178K | 192K | -34K | 60K | 202K | -2.01M | 180K | 45K | -1.94M | -925K | -6.14M | 1.22M | 1.37M | 2.82M | -5.67M | -10.66M | 2.37M | -2.09M | -7.54M | 5.77M | 3.77M | 974K | -2.44M | -461.36K | 3M | 2.5M | 1.56M | 1.06M | 300K |
| Effective Tax Rate % | -3.32% | -3.77% | 0.63% | -1.08% | -6.66% | -116.92% | 25.75% | -0.25% | 5.44% | 3.76% | 36.3% | 52.77% | -32.13% | 48.01% | 31.09% | 29.66% | 31.82% | 90.59% | 13.68% | 39.5% | 39.53% | 33.46% | 39.48% | 62.64% | 35.36% | 38.11% | 37% | 38.21% | 25% |
| Net Income | -4.74M | -4.49M | -5.23M | -5.8M | -3.89M | 3.73M | 519K | -18.15M | -33.79M | -23.27M | 87.07M | -11.71M | -9.92M | 401K | -12.88M | -24.87M | 4.28M | 296K | -35.62M | 8.52M | 5.64M | 1.34M | -4.64M | -971.75K | 5.45M | 4.06M | 2.65M | 1.72M | 900K |
| Net Margin % | -4.76% | -4.54% | -5.79% | -7.21% | -4.74% | 4.69% | 0.78% | -33.62% | -77.08% | -82.26% | 504.82% | -6.23% | -5.95% | 0.26% | -6.36% | -9.05% | 1.56% | 0.11% | -13.85% | 3.24% | 2.57% | 0.94% | -4.8% | -0.95% | 4.89% | 4.11% | 4.37% | 3.76% | 2.93% |
| Net Income Growth % | 8.98% | 14.12% | 9.81% | -49.11% | -204.29% | 618.88% | 102.86% | 46.29% | -45.21% | -126.73% | 843.77% | -18.05% | -2572.82% | 103.11% | 48.21% | -681.8% | 1344.26% | 100.83% | -517.91% | 51.03% | 322.46% | 128.81% | -377.28% | -117.84% | 34.33% | 53.11% | 54.15% | 90.93% | - |
| Net Income (Continuing) | -5.34M | -5.29M | -5.4M | -5.59M | -3.23M | 3.73M | 519K | -17.89M | -34.11M | -23.7M | -10.78M | -9.02M | -9.85M | -20.1M | -12.58M | -25.27M | 5.07M | -217K | -47.59M | 8.52M | 5.64M | 1.34M | -3.74M | -972K | 5.45M | 4.06M | 2.65M | 1.72M | 900K |
| Discontinued Operations | -81K | -103K | 0 | 0 | -360K | 0 | 0 | -258K | 320K | 429K | 97.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 13.99M | 14.18M | 13.34M | 1.28M | 1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 4.85M | 4.77M | 3.86M | 2.8M | 3.06M | 17.1M | 15.25M | 15.18M | 6.07M | 5.66M | 8.1M | 4.47M | 3.32M | 172.48K | 6.41M | 12.04M | 26.03K | 1.5M |
| EPS (Diluted) | -0.19 | -0.18 | -0.22 | -0.27 | -0.15 | 0.19 | 0.03 | -1.00 | -1.96 | -1.54 | 4.39 | -0.48 | -0.41 | -0.99 | -0.57 | -1.08 | 0.18 | 0.01 | -1.46 | 0.34 | 0.23 | 0.08 | -0.32 | -0.07 | 0.38 | 0.32 | 0.23 | 0.19 | 0.11 |
| EPS Growth % | 12.82% | 18.18% | 18.52% | -80% | -178.95% | 606.32% | 102.69% | 48.98% | -27.27% | -135.08% | 1014.58% | -17.07% | 58.59% | -73.68% | 47.22% | -700% | 1700% | 100.68% | -529.41% | 47.83% | 187.5% | 125% | -380.48% | -117.53% | 18.75% | 39.13% | 21.05% | 72.73% | - |
| EPS (Basic) | - | -0.18 | -0.22 | -0.27 | -0.15 | 0.19 | 0.03 | -1.00 | -1.96 | -1.54 | 4.39 | -0.48 | -0.41 | -0.99 | -0.57 | -1.08 | 0.18 | 0.01 | -1.46 | 0.34 | 0.23 | 0.08 | -0.32 | -0.07 | 0.39 | 0.33 | 0.24 | 0.20 | 0.11 |
| Diluted Shares Outstanding | 25M | 24.99M | 23.34M | 21.5M | 20.72M | 19.83M | 19.3M | 18.16M | 17.26M | 15.16M | 19.85M | 24.51M | 24.23M | 22.97M | 22.7M | 23.13M | 23.38M | 23.38M | 24.45M | 25.21M | 24.62M | 17.35M | 14.68M | 14.59M | 14.49M | 12.81M | 11.53M | 9.12M | 8.12M |
| Basic Shares Outstanding | 25M | 24.99M | 23.34M | 21.5M | 20.72M | 19.31M | 18.92M | 18.16M | 17.26M | 15.16M | 19.85M | 24.51M | 24.23M | 22.97M | 22.7M | 23.13M | 23.23M | 23.31M | 24.45M | 24.96M | 24.35M | 17.14M | 14.68M | 14.59M | 14.11M | 12.4M | 10.86M | 8.79M | 8.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 2.23% | - | - | - | - | - | 162.95% | 65.54% | - | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to recent quarterly filings, Gaia's year-over-year revenue growth has decelerated to 2.0% in 2026Q1, a significant cooling from the double-digit expansion observed throughout 2025, suggesting that the company's niche subscriber acquisition strategy may be encountering saturation within its core target demographic of alternative media consumers.
The sharp decline in growth rates indicates that the company's ability to attract new members is losing velocity, potentially signaling a need for a pivot in marketing strategy or content positioning. Investors should monitor whether this deceleration reflects a broader market trend in niche streaming or specific challenges in maintaining the appeal of the existing content library.
As reported in financial statements, Gaia maintains a robust gross margin profile of 86.0% as of 2026Q1, yet this structural advantage fails to translate into bottom-line profitability due to the heavy burden of operating expenses required to sustain the platform's niche content ecosystem and user acquisition efforts.
The consistency of these high gross margins confirms the scalability of the digital delivery model, where incremental content distribution costs remain minimal. However, the inability to leverage these margins into positive operating income suggests that the cost of acquiring and retaining subscribers remains disproportionately high relative to the revenue generated per user.
Based on the provided income statement data, Gaia's operating margin of -5.9% in 2026Q1 highlights a persistent lack of operating leverage, as SG&A expenses continue to track closely with or exceed gross profit, preventing the company from achieving the scale necessary to reach consistent GAAP profitability.
The data suggests that management has not yet successfully decoupled revenue growth from the rising costs of customer acquisition and platform maintenance. Without a clear inflection point where SG&A growth significantly trails revenue expansion, the company may continue to struggle with structural operating losses regardless of its high-margin content base.
Data from the last ten quarters indicates that Gaia's reliance on aggressive SG&A spending to drive top-line growth may be unsustainable, as evidenced by the company's inability to maintain positive net income despite a gross margin that consistently exceeds 85% across all reported periods.
Short-term observers might argue that the current spending is a necessary investment in market share, but the persistent negative net income suggests a potential mismatch between the cost of acquisition and the lifetime value of the subscriber base. This warrants further investigation into whether the company's churn rates are rising, which would exacerbate the pressure on the bottom line.
Quick answers to the most common questions about buying GAIA stock.
For fiscal year 2025, Gaia, Inc. (GAIA) reported total revenue of $99.0M. This represents a 222.3% increase compared to $30.7M in 1998.
Gaia, Inc. (GAIA) reported a net loss of $4.5M for the fiscal year ending 2025.
Gaia, Inc. (GAIA) reported an operating income of $-5.1M, resulting in an operating profit margin of -5.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Gaia, Inc. (GAIA) generated $86.2M in gross profit for the year, representing a gross profit margin of 87.1%. This demonstrates the company's core pricing power and production efficiency.